Scale characterizations in a data envelopment analysis technology distance function framework

The present study extends prior research on data envelopment analysis (DEA)-based returns to scale in view of the fact that the standard methods are very restrictive. The extension is made in the context of the directional technology distance function that generalizes the Shephard input and output distance functions. The two main results in this extended setting are as follows. First, we show how Banker's most productive scale size (MPSS) concept is characterized. Second, we obtain scale elasticity measures and examine the properties and the relationships with standard scale elasticity measures.